Carney Accuses US Steelmaker of Betraying Canadian Steelworkers

Canadian Prime Minister Mark Carney accused US steelmaker Cleveland-Cliffs of betraying Canadian workers after its Stelco subsidiary announced it would idle finishing operations at its Hamilton, Ontario plant, putting as many as 500 jobs at risk. The announcement, made on Sept 29, 2026, follows tariffs imposed by US President Donald Trump that Carney and Stelco both cite as a factor behind the layoffs.¹³⁵

Layoffs at Hamilton Works

Stelco informed United Steelworkers Local 1005 on Sept 28 that it planned to halt finishing work at Hamilton and shift manufacturing to its Nanticoke facility, Lake Erie Works. Union local president Ron Wells said the job losses would be closer to 350, while the company later told the union about 500 production staff would be affected across Hamilton and Lake Erie Works. Stelco said the cold-mill and coated departments would bear the brunt of the cuts, with a wind-down expected to begin Oct 9 and only 40 to 45 openings available at Lake Erie Works.⁶²

Cleveland-Cliffs verified plans to suspend its Hamilton cold-rolling and coating lines indefinitely beginning Oct 9, offering positions at the Nanticoke plant to some employees losing their jobs in Hamilton. Stelco said it expects a significant number of the affected workers to be absorbed at Lake Erie Works. Wells described the announcement as "extremely devastating" and said the company told the union, "So they're telling us they can't make money in the current conditions."⁵⁶

Carney threatens legal action

Carney said Cleveland-Cliffs' Canadian subsidiary had let down its workforce through the Ontario plant closures and accused the firm of breaching binding obligations linked to its 2024 purchase of Stelco, an acquisition Ottawa greenlit contingent on five-year job security pledges. Carney explained that the company had made specific commitments and carries legal responsibilities regarding employment levels. Carney added that his government intends to employ every tool at its disposal to hold the company accountable under the law.³⁵⁷

Carney also said Canada remained open to a trade settlement with Washington. "It continues to be the case that Canada stands ready to negotiate in good faith what is there, which is a mutually advantageous trade arrangement that respects both our country's sovereignty," he said. He declined to comment directly on remarks made separately by Trump and US trade adviser Peter Navarro.⁵

Tariffs and broken trade talks

These layoffs occurred against a backdrop of collapsed negotiations between Ottawa and Washington, with tariffs as high as 50 percent under Section 232 continuing to apply to Canadian steel and aluminum. Trump said he believed a trade deal with Canada was still possible in the coming weeks, predicting foreign officials would eventually apologise: "They're going to come in, and they're going to say, 'Sir, we are sorry'." Navarro said Canadian lobbyists should "get the hell out of our country."⁵

Cleveland-Cliffs cited the ongoing trade dispute, weak demand and continued import pressure as reasons for the layoffs. According to the company, orders for Stelco's cold-rolled and galvanized products dropped by almost 25 percent during the second quarter relative to average 2024 quarterly figures, while domestic demand for these products slipped roughly 10 percent in that same period. According to Cleveland-Cliffs, this decision will not relocate steelmaking away from Canada, and total steel output volumes will remain unchanged.¹⁴

Company defends tariff stance

Carney singled out Cleveland-Cliffs chief executive Lourenco Goncalves, who in 2024 praised the tariffs and called the 50 percent US steel tariffs "a necessary step" to protect American steelmakers. Goncalves has argued that Canada's failure to impose tariffs on imported steel keeps its coated steel prices well below US levels, attributing much of the global oversupply problem primarily to China.²¹⁷⁴

Industry analysts cited by CityNews Toronto said supply chains had been built on the assumption of continued free trade with the United States, and that federal measures had reduced import volumes without bringing them down enough. They noted Honda and Toyota continue to produce steadily in Canada and to buy significant volumes of Canadian steel.⁴

Community and political reaction

In Hamilton, workers described uncertainty over their futures. Jillian Watt, whose husband has worked at Stelco for 21 years, said the company "haven't spoken to individuals, so it's kind of still up in the air," adding, "He's a breadwinner for our family. We have four kids, you know, trying to make it by." Wells noted that workers wondered how long the shutdown might persist and whether to start searching for alternative employment, and he criticized Cleveland-based decision-makers as having "no ties to our community."²

Hamilton Mayor Andrea Horwath said the city was working with other levels of government in response, while federal minister Karina Gould and local figure Keanin Loomis both called the decision devastating. The office of Industry Minister Melanie Joly said Cleveland-Cliffs' rejection of alternative proposals and continuation of the layoffs was "extremely disappointing," and Ontario's Economic Development Minister Vic Fedeli called it "a significant blow to the hardworking men and women who showed up there this morning." Opposition leader Pierre Poilievre said Carney "needs to turn his rhetoric into reality and deliver for steelworkers."⁶